Contract renewal glossary
What is an auto-renewal clause?
An auto-renewal clause is a contract term stating that the agreement renews automatically for a further term unless one party gives notice to cancel before a set deadline. It shifts the default from "ends unless renewed" to "continues unless cancelled."
What to look for in the clause
An auto-renewal clause usually specifies three things. Find all three before you sign — and again before you cancel:
- The renewal term — how long the next period runs (often the same as the original, e.g. 12 months).
- The notice period — how far ahead you must cancel (commonly 30, 60, or 90 days).
- The method of notice — how cancellation must be delivered (written notice by email, post, or portal).
Together these create two dates: the renewal date, and the notice deadline (renewal date minus the notice period). Only the second one is actionable.
Is it the same as an evergreen clause?
Closely related. An auto-renewal clause renews the contract for a defined further term each time. An evergreen clause is an auto-renewal clause with no end — it keeps renewing indefinitely until cancelled. Every evergreen clause is an auto-renewal clause; not every auto-renewal clause is evergreen (some cap the number of renewals).
Auto-renewal clauses are easy to sign and easy to forget. Uplena finds the clause in every contract you own, calculates each notice deadline, and warns you before it's too late to cancel — free during early access.
Questions, answered.
What is an auto-renewal clause in a contract?+
A term that renews the contract automatically for another period unless you cancel within a specified notice window before the renewal date.
Are auto-renewal clauses legal?+
Generally yes for business contracts, since you agreed to them by signing. Some regions add disclosure or reminder requirements for consumer contracts. The reliable protection is tracking the notice deadline so you’re never caught.
What's the difference between an auto-renewal clause and an evergreen clause?+
An auto-renewal clause renews for a defined further term; an evergreen clause renews indefinitely. Evergreen is a type of auto-renewal with no end date.